NDAs (non-disclosure agreements) are contractual agreements or clauses, often used within a broader agreement, which seek to keep certain information confidential. They are widely used in settlement agreements and employment contracts for reasons such as protection of trade secrets and sensitive business information. 

However, there has been increasing concern that NDAs are being used to unfairly prevent workers from raising complaints about sexual harassment, discrimination and other forms of workplace misconduct. 

The Employment Rights Act 2025 (“ERA 2025”) which is expected to come into effect in 2027 will make void any provision in an agreement between a worker and their employer which prevents a worker from speaking out about relevant harassment or discrimination, subject to limited exceptions.

In preparation for the change, the UK Government has launched a consultation, closing on 8 July 2026, which seeks views on proposals regarding:

• The conditions which need to be met for NDAs to still be validly entered into in cases of harassment and discrimination (‘Excepted Agreements’). The proposed conditions include that an NDA may be valid if it is requested by the worker, prior to entering into the agreement the worker has received independent advice on the agreement, the worker provides written and informed consent, and that there is a cooling‑off period;
• Whether, under an Excepted Agreement, workers should be able to make ‘Permitted Disclosures’ about the harassment and discrimination to certain individuals and bodies (such as lawyers, health and care professionals, regulators and trade union representatives) irrespective of what their agreement says;
• Whether there should be an expansion of the types of individuals the legislation applies to beyond the definitions of employee and worker used in the Employment Rights Act 1996. For example, this may include some types of self-employed individuals and agency workers.

The consultation is a significant step in the government's drive to address the power imbalance between employer and worker and to prevent the misuse of NDAs to silence complaints of workplace harassment and discrimination. Employers should consider engaging with the consultation before it closes on 8 July 2026 and begin assessing the impact of the proposed changes on their current settlement practices and standard contractual agreements.